TokenInsight — Weekly Report 7/15–7/21

14 min readJul 24, 2018

Trend Review

TIIndex

Duringthe period from July 14 to July 20, the average TI index reflecting the overall performance of the blockchain industry was 769.78 points and increased by 29.46 points(+3.98%), with a maximum of 858.59 points( at July 18th 11 am) and a minimum of 681.65 points( at July 14th 4am). Compared to last week, the TI index rose by 13.44%.

TIGIndex

Duringthe period from July 14 to July 20, the average TIG index reflecting the overall performance of the blockchain industrywas 774.62 points and increased by 7.77 points(+1.01%), with a maximum of 870.84 points and a minimum of 703.34 points. Compared to last week, the TIG index increasedby 6.12%.

Daily Continuously Compound Rate of Return

On July 14 and 17, the daily continuously compounded rate of return of TI Index washigher than that of BTC and ETH index. On July 16, the daily continuously compounded rate of return of TI index was higher than that of BTC and lower than ETH, but it waslower than BTC and higher than ETH on July 15, 18,19 and July 20.

This week, BTC enjoyed aperiodical boom, whose price rose by nearly $1,000 from July 16th evening to July 18th morning. The average price of BTC was $6,838.36. BTC fell to its lowest point to $6,141.16 on July 14th around 4:00am and peaked at $7,589.71 on July 19th at 2:00am. In total, the price of BTC increased this week by 19.11%, compared to this sameperiod last week.

From July 14th to July 20th, the average price of ETH was $457.28. This week, ETH fell to its lowest point to $425.74 on July 14th around 4:00am and peaked at $425.74 on July 14th at 4:00pm. In total, the price of ETH increased this week by 4.21% compared to this same period last week.

From July 14th to July 20th, the average price of EOS was $7.87. This week, EOS fell to its lowest point to $6.70 on July 14th around 4:00am and peaked at $9.33 on July 18th at 11:00am. In total, the price of EOS increased this week by 14.81% compared to this same period last week.

From July 14th to July 20th, the average price of ETC was $17.05. This week, ETC fell to its lowest point to $16.08 on July 14th around 15:00pm and peaked at $18.38 on July 18th at 11:00am. In total, the price of ETC was roughly equivalent to the same period last week.

From July 14th to July 20th, the average price of ETC was $1.04. This week, ETC fell to its lowest point to $0.96 on July 14th around 4:00am and peaked at $1.18 on July 18th at 11:00am. In total, the price of ETC increased this week by 1.32% compared to this same period last week.

From July 14th to July 20th, the average price of ETC was $775.56. This week, ETC fell to its lowest point to $687.23 on July 14th around 17:00pm and peaked at $888.25 on July 18th at 11:00am. In total, the price of ETC increased this week by 12.26% compared to this same period last week.

This week, the BTC’s periodical boom has affectedthe entiremarket. We sawa upward trend of major cryptocurrencies, and the largest increase of 19.11% belongedto BTC. EOS and BCH also rose by more than 10% during the week. In addition to the impetus effect of BTC, BM denied deliberate attack to ETH’s network and came up with asolution to the high cost of RAM, which boosted followers’ confidence. Based on BCH’s smart contract implementation scheme — Wormhole’s conformation makes the future of application of BCH more promising. ETC, which faces competition from other IOT projects and has been rated as BBB by our team, remained horizontal price movement,

Given the overall goodmarket performance, 1413 currencies in the market have rose more than 70%, the average weekly yield is +11.88% (eliminating LCT abnormal value), and the median is +9.79%. The top three gainers are BUN(+208.23%), GOLOS（+201.96%）,DGPT（+201.20%）while the top three losers are ZCG（-99.25%）, GIM（-88.69%）, BET（-75.93%）.

Industries Indices Analysis

According to TokenInsight’s industry classification for tokens, currently 13 token industry sectors have enjoyed positive returns this week, accounting for 61.90% of the overall 21 token industry sectors. The top 3 gainers this week were Sharing Economy (+45.97%), Interoperability Between Blockchains (+44.75%), and Energy (+38.00%), while the top 3 losers were Social Network (-33.24%), Communication (-29.96%), and Exchange (-16.61%). In the latest results of the Ministry of Industry’s global public chain technology assessment, GXChain ranks fourth in the world, driving the Sharing Economy sector to rise.

Among major cryptocurrency industries, payment currencies BTC and XRPenjoyed a above-average performance(+21.94%, the fifth gainer); ETH and EOS (general platform) saw a modest rise, placing this week’s sectors at 12th (+2.47%); and ETC (IOT sector) increases slightly less(-1.04%, the 15th gainer).

Week Indicators

Turnover Ratio

Turnover Ratio= current trade volume/ current market value

The turnover ratio is a measurement of token liquidity calculated by dividing total trading volume over a period by the total market value for that same period. The higher the turnover ratio, the more frequently traded a token is. This points to a clear indication of higher trading activity.

From July 14thto July 20th, the market turnover ratio increased by 41.02%. By July 20th, it was approximately 6.25%. EOS and ETC enjoyeda higher turnover ratio than that of the market, being respectively 1.99 and 2.42 times of the latter. The turnover ratio of BTC, ETH, and MIOTA were lower than the market, indicating a relatively low level of activity. Among them, MIOTA had the lowest turnover rate, and the average weekly turnover rate was only one-third of the market.

TIPV Ratio

TIPV ratio= Current Market Value / Current Trading Volume

A significant negative correlation can be seen between the TIPV ratio and the closing price of cryptocurrencies throughout different industries. This follows a similar association to the traditional P/E ratio seen in finance. Being, the lower the TIPV ratio, the higher the potential profitability of a cryptocurrency.

From July 14thto July 20th, the market TIPV ratio decreasedby 29.09% to 16.00 by July 20th. The TIPV ratio of BTC, ETH and MIOTA are higher than the market, among which the TIPV ratio of MIOTA was 3.52 times of the market, indicating a low potential yield.

Sharpe Ratio

Sharpe ratio=(r- rf )/σ

wherer is the asset return, rf is the risk free rate, σ is the standard deviation of the asset excess return.

TheSharpe ratio is a measure of an investment’s excess return, above the risk-free rate, per unit of standard deviation. It is calculated by taking the return of the investment, subtracting the risk-free rate, and dividing this result by the investment’s standard deviation. The higher a Sharpe ratio is, the higher potential for returns.

From July 14thto July 20th, the Sharpe Ratio of all 5 tokens rosefrom negative to positive, reversing the downward trend of investment efficiency last week. BTC experienced the largest rise to 88.22% fromlast week’s figure of -26.46% while the sharperatio of MIOTA rose slightly from -19.89% to 26.41%. This week’s risks were largely compensated by the earnings, sothe risk factors were not fully revealed.

The Number of Github Commits

Comparedto last week, the ranking of ZSC rose from 2nd place to 1st overall on Github Commits by 98.02%. SHOW fell to the 2nd, whose number of Github Commits decreased by 6.12%. Although HPB droppedfrom fourth to fifth, its code submissions increasedby 29.85%. ADA rose from tenth to ninth, but the number of code submissions decreased by 15.09%. RDN and GXS fell to sixthand eighth, respectively, and the number of commits fell by 4.11% and 1.54%.

Current Events

Emergencies

Fcoin keeps using variousmethods, repurchaselock is the theme.

In order to encourage project parties to use FT for project fundraising, FCoin will add “FT Trading Zone” to its GEM(growth enterprises market) and adopt the “FT Fundraising Certificate (PoFT)” mechanism in the zone. At the same time, 10% of the total revenue was repurchased by FTdaily and permanently locked in the newly launched “locking warehouse is mining” mining category FCandy, and used as a sort of review of the GEM “ETH Trading Area” application.

Since last week, FCoin has frequently wanted to stay in FT positions, this week, it launched an innovative variety of “locking warehouse is mining”, supplemented by the incentive mechanism of the “ETH Trading Zone” on the GEM, which can attract users toactively responding to the repurchase initiative. On the other hand, it can also drive the popularity of the GEM new district, the “ETH Trading Zone”

BM denied deliberateattacks to Ethereum network, saying that the operation was too low. The cost of RAM is not a burden.

After exiting the EOS telegram group last week, this week, BM is still the focus of public opinion, and there are many amazing words. On one hand, on July 15th, Ethereum developers denied that EOS deliberately congested the Ethereum network to increase transaction fees through spamming, saying that the operation was too low; on the other hand, it clarified the intelligent design of more than $5 DApp can solve the problem of high RAM prices rather than mandatory price limits.

This week’s BM remarks can dispel the previous doubts about their credit overdraft and withdrawal from EOS. On the issue of attacking Ethereum and RAM costs, BM strives to maintain the reputation of EOS.

“Finance first test” CFA expanses, the digital currency and blockchain subjectsn will be added next year

Bloomberg reported that the Chartered Financial Analyst Association (CFA) will add financial and technical subjects such as digital currency and blockchain to the I and II exams for the first time from next year and add reading materials for the investment management of financial technology companies. The Level III exam does not seem to be involved.

The expansion of the “Financial First Test” to the direction of digital currency and blockchain indicates that blockchain technology is gradually gaining recognition from the financial industry. It has become an urgent affair to popularize financial technology knowledge among elites in the financial sector.

Columbia University and Tsinghua University have successively set up research centers. The combination of digital assets, production, and research has become inevitable.

According to thenextwe, IBM is working with Columbia University to create the “Columbia-IBM Blockchain and Data Transparency Center”; according to Phoenix.com Business July 17th, Bitmain has donated a Digital Financial Assets Research Center to the School of Economics and Management of Tsinghua University. .

Due to the extensive application of digital assets and the complexity of technology, the combination of production, study and research has become an inevitable trend. Two top universities, domestic and international, have set up research centers to convey the important position of digital assets on the one hand, and on the other hand, the determination of national research institutions to compete for the highlands in this field.

National Policies

Hong Kong Monetary Authority plans to launch blockchain trade finance platform in September. 21 banks participate as nodes.

According to the Financial Times, the Hong Kong Monetary Authority plans to launch a trade finance platform supported by the blockchain in September. The platform was initiated by seven local banks in Hong Kong and led by the Hong Kong Monetary Authority. Ping An Group participated in the design and will include 21 globally renowned multinational banks, including HSBC and Standard Chartered, as participating nodes.

There is a scanty few government-supported blockchain trade finance platforms. Hong Kong Monetary Authority goes ahead of time. This action aims to use blockchain technology to significantly reduce the time and paperwork required for everyday trade finance and supply chain finance transactions. In the meantime, it will reduce the likelihood of fraud in trade finance and dual financing, which may be even more effective for SMEs.

The Ministry of Industry and Information Technology issued an evaluation method for industrial Internet construction, including technical applications such as blockchain.

On July 19th, the Ministry of Industry and Information Technology issued the “Industrial Internet Platform Evaluation Method”, focusing on five parts including the platform commonality requirements. The evaluation method of platform basic commonality includes new technology application service, that is, whether the platform has the ability to explore new technology applications, and launch new technologies such as artificial intelligence, blockchain, VR/AR/MR.

As early as October 2016, the Ministry of Industry and Information Technology released the “White Paper on China’s Blockchain Technology and Application Development”, suggesting that the technical route of the blockchain should be divided into demand analysis and technical system research, key technology scheme selection and platform construction, technology open source optimization, and the application of the pilot four stages. This time, the attention to the compatibility of` basic platform with new technologies indicates that the technical route planned by the Ministry of Industry and Information Technology is progressing smoothly, and then it will move toward the technology open source optimization and application pilot.

International Policies

Coinbase acquisition is approved and SEC make actions frequently. US may be the first country to introduce cryptocurrency supervision mechanism.

This week, the US Financial Industry Regulatory Authority (FINRA) approved Coinbase’s acquisition of three security companies, while the US Securities and Exchange Commission (SEC) moved frequently to seeks advice on the introduction of the Bitcoin ETF on Chicago Board Options Exchange (CBOE). On the other hand, SEC cooperates with law firm Blakemore Fallon, forming Ketsal Consulting, a blockchain consulting firm.

FINRA has not banned Coinbase’s acquisition of three securities companies to obtain licenses for securities business. The SEC also has a positive attitude toward the implementation of cryptocurrency derivatives and consulting services, indicating that the United States has confidence in cryptocurrency regulation. The regulatory mechanism is on the horizon.

The National Tax Agency of Japan conducts environmental rectification of cryptocurrency taxation and strives to achieve declaration within one year.

According to the Japanese Sankei Shimbun, the National Tax Agency announced on July 15 that it will actively promote the environmental consolidation of cryptocurrency taxation and strive to achieve tax declaration in this area within one year. The National Tax Agency of Japan will cooperate with relevant organizations such as the Financial Department to discuss the implementation of the automatic calculation of the tax amount and the simplification of the declaration procedures.

Although Japan’s tax revenue in 2017 reached 58.79 trillion yen (+6.0%) according to the general accounting finals of the Japanese Ministry of Finance, Japan’s economic outlook remains worrisome due to factors such as trade frictions and rising crude oil prices. Japan increased the cryptocurrency tax rate while simplifying the levy process. On the one hand, it continued to boost the financial performance of the Japanese government, but on the other hand, some cryptocurrency exchanges could not bear the heavy tax burden and were forced to leave.

Giant Layout

Transportation application is deepening. Boeing and Accenture are striving to be “game changers”.

On July 17, Boeing Chief Technology Officer Greg Hayslop said Boeing is ready to use blockchain technology to create a traffic management system for drones. On the same day, according to Cointelegraph, Accenture will collaborate with French Multinational Aviation Thales Group, to update the aircraft component supply chain by make use of blockchain.

Previously, TFchain’s transportation public chain became a rare blockchain project. At present, international giants have laid out the application of blockchain in transportation, such as Accenture Aerospace and Defense Business General Manager John Schmidt. “Game changer”, it can be seen that the blockchain technology is deeply rooted in the pain points in this field, and the future may be promising.

Unilever and Oracle joined blockchain together, new army is added.

On July 17, Unilever is supporting a blockchain pilot platform that can promote transparency and create more data validation methods; Bianews July 18 news, IT giant Oracle launched the blockchain platform ,OBCS, providing a full management platform based on the Hyperledger structure, enabling enterprises to implement automatic processing of the process on the unchanging ledger.

The layout of Unilever and Oracle reflects that blockchain technology can solve many problems in the traditional supply chain, such as lengthy chain, hidden data, and updated time-sharing, which greatly enhances the operational efficiency of enterprises.

Statement

All rights reserved. All the data, analysis and other information in the weekly reports of this Wechat subscription account are belong to TokenInsight Inc., including text, logo, pictures, photos, audios, videos, tables, layout, trademark, domain, etc. They are all under the protection of the PRC Copyright Law, PRC Trademark Law, PRC Patent Law, and other applicable international conventions. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of TokenInsight Inc. Whoever violates the provisions shall be investigated for legal responsibility.

All the content credited to TokenInsight, including but not limited to text, graphs, pictures, audios, videos and design are reserved by our company. Any media, website, wechat subscription account, company and individual are prohibited to republish, link, or distribute by any means. Those are entitled to use the content have to use it within the scope of authority and credit us. We prefer: ‘Source: TokenInsight’.

All the content noted not ‘TokenInsight’in our WeChat App are republished, including but not limited in text, graph, diagram, audio, video, artistic design and so on, which aims to deliver information to the public. But that does not mean TokenInsight agrees with the viewpoints and has vertified the authenticity. Whenever media, websites, WeChat apps and individuals use the content must be legally authorized by copyright owners within authorized scope, reserve the source of manuscripts and bear the entire legal responsibility. If tampers with manuscript origin arbitrarily, TokenInsight will prosecute their legal liabilities.

The viewpoints of the analysts from this WeChat app in the weekly reports just express their own position and don’trepresent TokenInsight’s.

TokenInsight shall not be responsible for any loss, civil dispute and administrative disputes resulted from illegally and improperly republishing.

TokenInsight reserves all the rights of law to prosecute their legal liability for any behavior of not complying with this statement and illegal infringements.